Strides Pharma Q1 Results Review - Turnaround In Stelis Drives Earnings Momentum: ICICI Securities

ICICI Securities Report

Strides Pharma Science Ltd.’s Q1 FY25 results were driven by strong performance in U.S. and turnaround in Stelis. U.S. sales of $70 million in Q1 were driven by Suprep (market share at 30%) and launch of a product acquired from Endo.

Management maintains its FY25 U.S. sales guidance of $285–300 million and $400 million by FY27. In Q1 FY26, it targets to file two niche products (controlled substance or nasal spray), which would have a market size of $600–700 million each with the U.S. Food and Drug Administration.

Stelis posted sales of $9.4 million ($21 million in FY24) and a positive adjusted Ebitda of $1.2 million in Q1 FY25, which curbed joint venture/associate losses, and hence, delivered a beat on earnings.

Management expects Stelis to see sales of $50 million and margins of 30% in FY25. We raise our EPS estimate by 9–11% for FY25/26. Maintain Add; target price revised to Rs 1,110 (Rs 1,000 earlier), valuing the company at 16 times FY26E earnings.

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